What to do when a dispute starts on a project

1. Stay calm and stop escalation

Early on, emotions run high. Avoid angry emails and accusations. Describe the issue factually. A dispute that is still a disagreement is usually easier to settle than one that has hardened into a claim.

2. Understand what the dispute is about

Write down, in neutral terms:

• What is the issue? Money, a defect, delay, scope, a change, a decision?
• Who is involved?
• What does each side say, and why?
• What does the contract say about it?

Often the real issue is different from the first complaint.

A dispute that is still a disagreement is usually easier to settle than one that has hardened into a claim.

3. Read the contract

The contract usually states how disputes should be handled: notices, time limits, meetings, and steps such as negotiation, mediation, adjudication, arbitration or the courts. Time limits can be strict. In the UK, many construction contracts also give a statutory right to adjudication, a fast process to get a decision on a dispute. Follow the contract's process, and take advice about deadlines.

4. Gather the facts and records

Collect and organise:

• the contract, appointments and any changes;
• drawings, specifications and revisions;
• instructions, emails, minutes and site records;
• photographs and dated records of the issue;
• invoices, payments and valuations.

Good records are often decisive. Keep adding to them.

5. Talk

Direct conversation, with a clear head, solves a surprising number of disputes. Ask the other side to explain their view. Look for areas of agreement, and for practical solutions. Confirm any agreement in writing.

6. Consider informal help

An independent person, such as a respected colleague, a project manager or a professional adviser, may help resolve the issue.

7. Use the formal routes if needed

• Mediation. A neutral mediator helps both sides to find a settlement. It is private and non-binding unless you agree a settlement.
• Adjudication, where available, gives a quick, temporary binding decision.
• Arbitration or court proceedings give a final decision but take time and cost more.
• Expert determination may suit technical questions.

The best route depends on the contract, the issue, the amount and the relationship.

8. Tell your insurer where required

If the dispute may lead to a claim against you, notify your professional indemnity insurer as your policy requires, and do not admit liability or settle without their agreement. See Professional indemnity insurance.

9. Keep working where you can

If the contract allows and it is safe and sensible, continue to perform your duties. Stopping may make your position worse. Take advice before suspending.

10. Learn from it

After the dispute, ask what could have prevented it: a clearer agreement, better communication, a firmer change process, or earlier decisions. See How to write an appointment agreement.

In short

Stay calm, understand the issue, read the contract, keep records, talk, use the formal routes if needed, tell your insurer, and take legal advice early.

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